Banks tightening norms for education loans

With non-performing assets (NPAs) in the educational loan portfolio rising, banks are putting in place mechanism to check delinquencies and also keep track of students. The Executive Director of Canara Bank, Mr.H.S. Upendra Kamath stressed the need to assess the repayment capacity of the borrower, which comprises two components- of the parent and of the student himself after he gets employed, which depends upon the course he has selected, the employment potential of the course and the track record of the institution as far as placement is concerned.(BL13092010)